A fully capitalized Bangko Sentral ng Pilipinas (BSP) can provide greater support for the country’s macroeconomic fundamentals, according to a high-ranking BSP official.
“The NG [national government]has the prerogative on what to do with our long delayed full capitalization,” said BSP Deputy Governor Diwa Guinigundo.
Guinigundo was referring to the mandate by Republic Act 7653, or the New Central Bank Act of 1993, whereas the government should provide a P50-billion initial infusion for the BSP.
As of press time, only P40 billion has been given to the central bank, the first P10 billion was infused in 1997, the second P10 billion in 2011, and another P20 billion in December 2012. The government has not yet released the remaining P10 billion.
“NG can be assured though that if our cap is fully paid, we can provide greater support in terms of doing our job to promote price and financial stability that in turn could provide a very good macro condition in addressing the challenges of rehab and reconstruction,” Guinigundo added.
According to Budget Secretary Florencio Abad, the government may not be able to release the remaining P10 billion for the BSP since the government is prioritizing the funds needed for the reconstruction and rehabilitation of the Super Typhoon Yolanda-stricken areas.
“We did that last year . . . [but at this]time we really need it for reconstruction. I think it is better to invest it [in reconstruction efforts],” Abad said.